Hey there everyone, I briefly I mentioned this in my response to the MS vs reselling thread, but I was curious as to if anyone has had any success with using consignment platforms for a form of MS? I've looked into it an began to explore it but i'm not 100% certain on it an I would be 100% open to other options you guys may know of.
MS through consignment platforms
- Thread starter Keeton
- Start date
lochquel
Level 2 Member
I'd say investor beware. It's much like prosper/lending club. People throwing money at ideas where there is little recourse if things go bad. ie Gambling. Kickfurther is my point of reference.
How is it like prosper/lending club if you're purchasing inventory? Especially when you consider that many of the brands happen to be Purchase order backed. If their not and the inventory fails to sell, you still own it and have the option of receiving it. I'm just playing devil's advocate here
lochquel
Level 2 Member
Yeah, maybe I'm not reading your OP correctly. I've been burned by Kickfurther. They have a 'consignment model' but largely it's a system based on trust, which not many people have and even further on the interwebs. It sounds great in theory, but when a loan goes belly up, who is actually gonna drive to the warehouse and procure a 1000 widgets that you really have no idea of then selling yourself. YMMV, just saying.
I apologize that you've been burned there. I have been involved for a short time and haven't had any issues. My original purpose of this was to gauge everyone's involvement with consignment. I was going to wait but I saw a co-op I wanted to get in so I just went in. I haven't had any issues yet and I hope I don't. From my understanding of reading their blog, they put failed inventory up to a vote to see if you want to receive it or have them liquidate it. I'm going to continue with caution as I do for every platform i've used, especially because I practiced the same caution with stocks. Even then I lost money in February when oil dropped. Hindsight is 20/20 though because I kick myself for not catching that.
MickiSue
Level 2 Member
I certainly would not consider Kickfurther to be MS on any level. High risk investment, though, absolutely.
If you are investing small amounts, and making small returns, it's a way to increase your net worth. But, as noted by lochquel, the bottom can fall out and you really don't have a lot of options, barring paying for the truck to head to a warehouse, probably in a distant state, and grabbing your share of the inventory.
If you are investing small amounts, and making small returns, it's a way to increase your net worth. But, as noted by lochquel, the bottom can fall out and you really don't have a lot of options, barring paying for the truck to head to a warehouse, probably in a distant state, and grabbing your share of the inventory.
First off, it's not an investment by right of it being consignment. You stated that a truck would have to drive out to a warehouse to grab your inventory. That right there shows that you agree the inventory is yours. That is exactly what consignment is, you purchase the inventory for a business and earn profit as your inventory sells.
The site also did state that if a business fails, you have the right to vote on the issue of whether or not to allow Kickfurther to liquidate it or to receive it yourself. Again this is because the inventory is yours.
As for it being a form of MS, I don't see how it's not. MS at its root is obtaining multiple resources from one initial form of spending. You purchase the inventory on consignment with your credit, earn rewards from said credit and earn profit from the inventory you purchased on credit. That is two resources from one initial source.
The site also did state that if a business fails, you have the right to vote on the issue of whether or not to allow Kickfurther to liquidate it or to receive it yourself. Again this is because the inventory is yours.
As for it being a form of MS, I don't see how it's not. MS at its root is obtaining multiple resources from one initial form of spending. You purchase the inventory on consignment with your credit, earn rewards from said credit and earn profit from the inventory you purchased on credit. That is two resources from one initial source.
MickiSue
Level 2 Member
I'm not going to discuss MS in level 1. Please, when you understand it better, and are in a safer area, we can talk about the differences. But not here.
I'm merely expressing concern; there IS a fair amount of risk in this investment, and people pointing it out to you are trying to help, not argue.
I'm merely expressing concern; there IS a fair amount of risk in this investment, and people pointing it out to you are trying to help, not argue.
ToothMiles
Level 2 Member
Learnt my lesson with Prosper & I don't invest until I do my homework well. You take calculated risk with every investment.
MickiSue
Level 2 Member
There are so many other ways to use your CC that are safer and pay out faster. If you want to be a good person, then Prosper, etc, doing small loans that are spread around is your best bet. But putting large amounts of money into sites like these is the equivalent of buying large amounts of penny stocks and having that be the bulk of your portfolio. MAYBE you'll make a bundle. Most likely, you won't.
Xcardplayer
Level 2 Member
I also think you pay a vig when you cash out.